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The Alvord Unified School District (“Employer”) has established and makes available Tax Sheltered Annuity (“TSA”) and Deferred Compensation (“DCP”) voluntary retirement plans (“Plans”) for the benefit of its employees. It is intended that the Plans comply with the requirements of and qualify under Section 403(b) and 457(b) of the Internal Revenue Code (“IRC”) of 1986, as amended, and Section 17501 of the California Revenue and Taxation Code. It is not the purpose of the Employer by providing these Plans to recommend its use by any individual employee. The fact that a particular contract or custodial account may be available under the Employer’s Plans does not constitute an endorsement, recommendation, or approval of any kind, and the Employer does not warrant any particular tax consequence to the employees who elect to participate.

GENERAL INFORMATION:

1.  Eligibility: Each employee of the Employer is given an opportunity to participate in the Employer’s TSA/403(b) Plan, and eligible employees/individuals as stated in the Plan Document of the Employer’s DCP/457(b) Plan (“the Plans”), by entering into an amendment of employment contract through the use of a Salary Reduction Agreement (“SRA”).

2.  Plan Administration: Envoy Plan Services, Inc., the Third Party Administrator for the Plans (“Administrator”), is designated to perform all of the administrative services of the Employer’s Plans. The Administrator provides all operational functions relating to all aspects of the Plans for the Employer and for the employees participating in the Plans. Employees and participants should contact the Administrator directly for processing SRAs, all DCP/457(b) distribution requests, and to obtain answers to questions relating to all matters with regard to the Plans.

ENROLLMENT PROCEDURES:

To establish salary reductions to either the TSA/403(b) Plan and/or the DCP/457(b) Plan, or to make a change to an existing Salary Reduction Agreement as a current participant, employees must follow the process outlined below and submit the properly completed documents directly to the Administrator. Do not submit documents, including SRAs to the Employer.

1.  Cut-off Date for Salary Reduction Agreements: Due to IRS regulations, the Administrator must receive your thoroughly completed Salary Reduction Agreement, affecting both TSA/403(b) and DCP/457(b) salary reductions, no later than the last business day of the month. Properly completed SRAs timely received will be processed by the Administrator to affect future pay periods as explained below. Your salary will not be affected in the month the SRA is received. The SRA will affect your compensation for the next payroll period for Certificated and Classified employees.

2.  CalSTRS Registry: Effective November 29, 2004, all 403(b) Company/Providers chosen MUST be a District approved provider registered on the CalSTRS Registry. The current list of approved companies/providers can be viewed on the Administrator’s website at EnvoyPlanServices.com or on the CalSTRS Registry at 403bCompare.com.

3.  Submission of Salary Reductions Agreements: SRAs should only be submitted after choosing the provider(s) you wish to use, and after establishing a TSA/403(b) and/or DCP/457(b) account with the provider(s). A Salary Reduction Agreement and a list of the TSA/403(b) and DCP/457(b) providers, may be obtained by directly contacting the Administrator and via the Internet at EnvoyPlanServices.com .

4.  Catch-up Contributions: If your SRA is requesting that your salary be reduced by an amount in excess of the basic Maximum Allowable Contribution (“MAC”) limit, and the Age 50+ Catch-up limit (if applicable) for the affected tax year, you may be required to submit a completed Participant Information Form (“PIF”) directly to the Administrator to have a personal MAC limit established. Your personal MAC may increase your MAC limit due to other catch-up options that you may qualify for under IRC Sections 402(g) and 457(b). A PIF may be obtained by directly contacting the Administrator, and via the Internet at EnvoyPlanServices.com.

5.  Terminate (Stop) Your Salary Reductions: To discontinue your TSA/403(b) and/or DCP/457(b) salary reductions, submit a new Salary Reduction Agreement and complete the following: 1) Check the “Termination” box; and 2) Complete the TSA/403(b) and/or DCP/457(b) sections by writing in the name of the provider, and indicate $0 for the amount, and provide the Effective Date. Incomplete SRA forms cannot be processed, so please be sure that the SRA is properly completed and submitted directly to the Administrator by the last business day of the month, to affect future income AND prior to termination of your TSA/403(b) and/or DCP/457(b) account with your existing provider.

Completing the Salary reduction agreement & Participant INFORMATION Form

Salary Reduction Agreements may be submitted to the Administrator using any of the following methods:

§  Personally deliver to Administrator’s office at the address on Page 3.

§  U.S. mail

§  Overnight delivery service

Participant Information Forms may be faxed to the Administrator, if properly completed, signed and dated; or may be delivered in any manner listed above.

Your salary reductions for all Plans will not be affected until all necessary forms are received properly completed and approved by the Administrator. SRAs received after the deadline will take effect the next qualifying pay period. Incomplete, inaccurate, or non-legible forms will be returned. Your SRA is irrevocable as to salary paid and reduced while the SRA is in effect.

Note: If you own a business and have a separate retirement plan, or if you participate in another employer’s retirement plan (such as a TSA/403(b), DCP/457(b), SEP, SIMPLE IRA/401(k), or 401(k) Plan), your contributions to that plan must be taken into consideration when calculating your MAC limit to this Employer’s Plans.

It is your responsibility to determine if you are affected by this rule, and if so, to notify the Administrator. You are strongly encouraged to review and understand the Definitions to the Plans, which are provided to help you understand your responsibilities.

When additional participant information may be Required

§  At any time, if required by the Administrator or Employer to substantiate employee contributions; or in the event of an IRS audit of the Employer’s Plans.

§  If non-salary reduction contributions are being made by the Employer on behalf of the employee.

use of financial advisor/agent/provider assistance

You may use the assistance of financial advisors, agents/brokers, or providers who may utilize their own custom forms or computer programs to develop the data you will need to complete the SRA and/or the Participant Information Form (“PIF”). It is your responsibility to provide accurate information in the process of completing all forms. Submit to the Administrator only the forms, worksheets, SRA, and PIF that have been approved for use by the Employer and Administrator.

Administrator information
Below is the contact information for the Administrator. Please contact the administrator for all matters relating to the TSA/403(b) and DCP/457(b) plans.
Salary Reduction Agreement Processing

Complete all SRAs in Black Ink Only.

All completed Salary Reduction Agreements are to be submitted directly to the Administrator for processing.

Envoy Plan Services, Inc.

901 Calle Amanecer, Suite 200

San Clemente, CA 92673

Please note: Faxed SRAs Cannot be Accepted or Processed
questions and inquiries

Contact the Administrator below for ALL questions and inquiries relating to the Plans; including questions related to your paycheck affected by your TSA/403(b) and DCP/457(b) salary reductions and the processing of your Salary Reduction Agreement.

Envoy Plan Services, Inc.

Local Ph: 949-366-5070

Toll free: 800-248-8858

Fax: 877-513-2272

www.EnvoyPlanServices.com

Important Note:

Your Employer cannot process your Salary Reduction Agreement; if you or your financial advisor/agent inadvertently submit your SRA to your Employer to initiate a new SRA, make changes, or to terminate your existing SRA, or else the processing of your SRA will be delayed.

To obtain faster service, please contact the Administrator directly. Please do not contact your Employer for questions relating to the Plans.

Table of Salary Reduction Contribution Limits - Basic Limits

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You may make salary reduction contributions simultaneously to the TSA/403(b) Plan and to the DCP/457(b) Plan of the Employer, equal to 100% of your includible compensation, not to exceed the basic Maximum Allowable Contribution (“MAC”) limits identified in the table below:

Catch-up Contributions
If you wish to make salary reduction contributions in excess of the basic MAC limits as stated above, you may qualify to elect the use of the “Catch-up Options” made available by the Internal Revenue Code as described below.
IRC 402(g)(7) Increased Elective Deferral Limit (15 Years of Service) – TSA/403(b) Plan Only

Employees who have 15 or more years of service with your current Employer by the end of the calendar year for which voluntary salary reduction contributions are being made, may be eligible to increase their contributions by as much as $3,000 each year. The requirements are:

Only employees whose total contributions averaged less than $5,000 for each year of service during their 15 or more total years of service to a TSA/403(b) Plan or a DCP/457(b) Plan (or any other elective deferral plan sponsored by the Employer) are eligible to use the limit. For example: If the affected employee has 15 years of service completed and contributed $75,000 or more to the TSA/403(b) and DCP/457(b) Plans combined during the 15 years of service, this catch-up option cannot be used.

A $15,000 lifetime maximum limit can be utilized under this increased limit, not to exceed $3,000 per tax year. For example: An employee contributing an extra $3,000 per year in excess of the basic MAC limit* could only contribute those extra amounts for five years, compared to an employee contributing $1,000 per year in excess of the basic limit who could contribute the $1,000 extra amounts for 15 years.

The extra contributions made under this option do count against the Section 415(c) limit.

IRC 414(v) Age 50+ Catch-up

For employees that are age 50+ by the end of the calendar year, the additional amounts identified below can be contributed to the TSA/403(b) and DCP/457(b)* Plans. The increased Age 50+ Catch-up Option is permitted based strictly on attained age by the end of the calendar year. There are no other requirements or restrictions. The extra salary reduction contributions made under this option do not count against any other limit.

May contribute only the greater of the Age 50+ Catch-up Option, or if eligible, the Final 3-Year Catch-up Option.

*The basic limits were: $10,500 in 2000 and 2001, $11,000 in 2002, $12,000 in 2003, and $13,000 in 2004 .

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Enrollment Procedures 457/403 Rev.01/24/2007